It is not possible to have a comparative advantage in producing a good or service without having an absolute advantage.

Question

Quizplus · Accepted Answer

It is possible to have a comparative advantage in producing a good or service without having an absolute advantage. Absolute advantage refers to the ability to produce a good or service with fewer inputs or resources than another country. Comparative advantage, on the other hand, refers to the ability to produce a good or service at a lower opportunity cost than another country. A country can have a comparative advantage in producing a good even if it is not the most efficient producer of that good.

It Is Not Possible to Have a Comparative Advantage in Producing